The Reaction of the Consumption of Fossil Fuels to Trade Openness in Latin America & the Caribbean Countries

Autores

  • Matheus Koengkan Department of Economics, University of Évora, Portugal http://orcid.org/0000-0002-0062-4476
  • José Alberto Fuinhas NECE-UBI, CeBER and Faculty of Economics, University of Coimbra, Coimbra,Portugal
  • Isabel Vieira ¹CEFAGE-UE and Department of Economics, University of Évora, Évora, Portugal

DOI:

10.19093/res10861

Palavras-chave:

Energy economics, Econometrics, Fossil fuels, Latin America & the Caribbean, Macroeconomics, Trade openness.

Resumo

This article investigates the impact of trade openness and renewable energy on the consumption of fossil fuels for a panel of fourteen LAC countries over the period from 1990 to 2014. To this end, a PARDL model in unrestricted error-correction form is estimated, and robustness checks are performed by estimating a PNARDL model. The results of the PARDL model point indicate that the impact of economic growth and elasticity of trade openness are statistically significant at the 1% level and contribute to increased consumption of fossil fuels in the LAC countries. However, the impact and elasticity of consumption of renewable energy are statistically significant at 1% and 5% levels and thus contribute to decreasing consumption of fossil fuels. Nevertheless, the asymmetry of the impact of consumption of renewable energy and its elasticity decrease the consumption of fossil fuels. Therefore, the positive impact of trade openness on the consumption of fossil fuels suggests that the process of globalisation by trade liberalisation in the LAC countries is not sufficient to bring more investment that encourages R&D in energy efficiency technologies, and equipment that reduces the consumption of energy from non-renewable energy sources by households and firms.

Biografia do Autor

Matheus Koengkan, Department of Economics, University of Évora, Portugal

PhD in (Economics) at the University of Évora, Évora (Portugal), Masters (in Economics) from the University of Beira Interior. He is a researcher in the areas of Latin American and the Caribbean studies, macroeconomics, energy economics and environmental economics at Center for Advanced Studies in Management and Economics of the Universidade de Évora (CEFAGE-UÉ). He has published in international journals, such as Energy; Environmental Economics and Policy Studies; Environmental Science and Pollution Research; and Environment Systems and Decisions.

José Alberto Fuinhas, NECE-UBI, CeBER and Faculty of Economics, University of Coimbra, Coimbra,Portugal

PhD (in Economics) is a professor of monetary and financial economics, and intermediate econometrics at the Faculty of Economics, University of Coimbra (Portugal). He is a researcher in the areas of macroeconomics and energy economics, at the (CeBER) - Centre for Business and Economics Research, and (NECE-UBI) - Research Unit in Business Science and Economics, sponsored by the Portuguese Foundation for the Development of Science and Technology. He has published in international journals, such as Energy, Economic Modelling; Energy Policy; and Energy Economics.

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Publicado

2021-03-16

Como Citar

Koengkan, M., Fuinhas, J. A., & Vieira, I. (2021). The Reaction of the Consumption of Fossil Fuels to Trade Openness in Latin America & the Caribbean Countries. Revista De Estudos Sociais, 22(45). https://doi.org/10.19093/res10861

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